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ECA Marcellus Trust I (ECTM) declares $0.090 distribution and builds $3.8M reserve

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(Moderate)
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Form Type
8-K

Rhea-AI Filing Summary

ECA Marcellus Trust I reported its quarterly cash distribution for the quarter ended March 31, 2026. The distribution will be $0.090 per unit, payable on or before June 2, 2026 to unitholders of record as of May 28, 2026.

The Trustee is continuing its long-running program to build a cash reserve for future expenses. It has increased the targeted reserve from approximately $1.8 million to approximately $3.8 million and is currently withholding $90,000 per quarter toward this goal. Any excess reserve ultimately will be returned to unitholders with interest. The release also highlights that distributions depend heavily on natural gas prices and production volumes, and that low prices could reduce or eliminate future distributions.

Positive

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Negative

  • None.
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Quarterly distribution $0.090 per unit For the quarter ended March 31, 2026; payable on or before June 2, 2026
Record date May 28, 2026 Unitholders of record on this date receive the $0.090 distribution
Quarterly reserve withholding $90,000 per quarter Amount withheld from each distribution since reaching $1.8M initial reserve
Initial cash reserve target $1.8 million Original reserve target achieved in the quarter ended December 31, 2022
Revised cash reserve target $3.8 million Higher target determined by the Trustee in November 2021
Historical withholding formula $90,000 or 10% each quarter From Q1 2019 through Q4 2022, withheld the greater of $90,000 or 10% of funds
Non-U.S. ECI withholding Highest marginal rate Section 1446 withholding on effectively connected income for non-U.S. persons
Non-U.S. FDAP withholding 30% rate Section 1441 withholding on certain U.S.-source income absent treaty reduction
cash reserve financial
"building a cash reserve for the payment of future known, anticipated or contingent expenses"
Cash reserve is the amount of readily available cash a company keeps on hand to pay bills, handle unexpected costs, or seize quick opportunities—like an emergency fund for a household. For investors, a healthy cash reserve signals that a business can weather downturns, fund short-term needs without borrowing, and maintain flexibility for investments or dividends; too much idle cash, however, may suggest missed growth opportunities.
Marcellus Shale formation technical
"natural gas properties now held by Greylock Energy LLC ... in the Marcellus Shale formation"
Section 1446 regulatory
"Pursuant to Section 1446 of the Internal Revenue Code of 1986"
Section 1441 regulatory
"Under IRC Section 1441, withholding tax on fixed, determinable, annual, periodic income"
qualified notice regulatory
"This release is intended to be a qualified notice to nominees and brokers"
A qualified notice is a formal communication that meets the specific wording, timing and delivery rules set out in a contract, corporate policy or law so it is legally effective. Think of it like a certified letter that ticks every checkbox required by an agreement. Investors care because only a qualified notice can trigger rights or changes — such as deadlines, payments, defaults or board actions — and thus can materially affect a company’s obligations and share value.
forward-looking statements regulatory
"This press release contains statements that are "forward-looking statements" within the meaning of Section 27A"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Understanding 8-K Material Events →

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): May 18, 2026

 

ECA MARCELLUS TRUST I

(Exact name of Registrant as specified in its charter)

 

Delaware  001-34800   27-6522024
(State or other jurisdiction of  (Commission   (I.R.S. Employer
incorporation or organization)  File Number)   Identification No.)

 

The Bank of New York Mellon Trust Company, N.A.

601 Travis, 16th Floor
Houston, Texas

 77002

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (512) 236-6555

 

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act: None.

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

ITEM 2.02. Results of Operations and Financial Condition.

 

Attached as Exhibit 99.1 is a press release issued on behalf of the Registrant. The information furnished is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

ITEM 9.01. Financial Statements and Exhibits.

 

(d)Exhibits.

 

99.1Press Release dated May 18, 2026.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  ECA Marcellus Trust I
   
  By: The Bank of New York Mellon Trust Company, N.A., 
  as Trustee
     
  By: /s/ Sarah Newell
  Name: Sarah Newell
  Title: Vice President

 

Date: May 18, 2026

 

 

 

 

Exhibit 99.1

 

ECA Marcellus Trust I Announces Quarterly Distribution

 

ECA Marcellus Trust I

The Bank of New York Mellon Trust Company, N.A., Trustee

 

_____________News Release_____________

 

For Immediate Release

 

HOUSTON, Texas May 18, 2026 —   ECA MARCELLUS TRUST I (OTCID Basic Market: ECTM) announced today that the Trust’s distribution for the quarter ended March 31, 2026, will be $0.090 per unit, which is expected to be distributed on or before June 2, 2026, to holders of record as of the close of business on May 28, 2026.

 

Since the first quarter of 2019, the Trustee has been gradually building a cash reserve for the payment of future known, anticipated or contingent expenses or liabilities of the Trust by withholding cash reserve amounts from each quarterly distribution. In November 2021, the Trustee notified Greylock Energy LLC that the Trustee had determined to increase the targeted cash reserve from the initially stated amount of approximately $1.8 million, to approximately $3.8 million. From the first quarter of 2019 through the fourth quarter of 2022, the Trustee withheld an amount from each distribution equal to the greater of $90,000 or 10% of the funds otherwise available for distribution each quarter. Since achieving the initial target of $1.8 million in the quarter ended December 31, 2022, the Trustee has been withholding, and currently plans to continue to withhold, $90,000 per quarter until a total of approximately $3.8 million in cash reserves is withheld. The Trustee may increase or decrease the targeted amount at any time and may increase or decrease the rate at which it is withholding funds to build the cash reserve at any time, without advance notice to the unitholders. Cash held in reserve will be invested as required by the trust agreement.  Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent expenses or liabilities of the Trust eventually will be distributed to unitholders, together with interest earned on the funds. The Trustee has elected to withhold approximately $90,000 this quarter.

 

The Trust was formed to own royalty interests in natural gas properties now held by Greylock Energy LLC and certain of its wholly owned subsidiaries (“Greylock”) in the Marcellus Shale formation in Greene County, Pennsylvania. The Trust is entitled to receive certain amounts of the proceeds attributable to Greylock’s interest in the sale of production from the properties. As described in the Trust's filings, the amount of the quarterly distributions is expected to fluctuate from quarter to quarter, depending on the proceeds received by the Trust as a result of production and natural gas prices and the amount of the Trust's administrative expenses, among other factors. The amount of proceeds received or expected to be received by the Trust (and its ability to pay distributions) has been and will continue to be directly affected by the volatility in commodity prices, which are subject to a variety of factors that are beyond the control of the Trust or Greylock. Low natural gas prices will reduce proceeds to which the Trust is entitled, which will reduce the amount of cash available for distribution to unitholders and in certain periods could result in no distributions to unitholders.

 

Pursuant to Section 1446 of the Internal Revenue Code of 1986 (the “IRC”), withholding tax on income effectively connected to a United States trade or business allocated to non-U.S. persons (“ECI”) should be made at the highest marginal rate. Under IRC Section 1441, withholding tax on fixed, determinable, annual, periodic income from United States sources allocated to non-U.S. persons should be made at a 30% rate unless the rate is reduced by treaty. Nominees and brokers should withhold at the highest marginal rate on the distribution made to non-U.S. persons. A non-U.S. holder’s gain on the sale of Trust units is treated as ECI to the extent such holder would have had ECI if the Trust had sold all of its assets at fair market value on the date of the exchange.  A transferee of units is also required to withhold 10% of the amount realized on the sale of exchange of units (generally, the purchase price) unless the transferor certifies that it is not a nonresident alien individual or foreign corporation, or other exception is available. This release is intended to be a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b) by ECA Marcellus Trust I, and while specific relief is not specified for Section 1441 income, this disclosure is intended to suffice.

 

 

 

 

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical facts, are "forward-looking statements" for purposes of these provisions. These forward-looking statements include the amount and date of any anticipated distribution to unit holders. The anticipated distribution is based, in part, on the amount of cash received or expected to be received by the Trust from Greylock with respect to the relevant quarterly period. Any differences in actual cash receipts by the Trust could affect this distributable amount. Other important factors that could cause actual results to differ materially include expenses of the Trust and reserves for anticipated future expenses. Statements made in this press release are qualified by the cautionary statements made in this press release. Neither Greylock nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release. An investment in Common Units issued by ECA Marcellus Trust I is subject to the risks described in the Trust's Annual Report on Form 10-K for the year ended December 31, 2025, and all of its other filings with the Securities and Exchange Commission. The Trust's annual, quarterly and other filed reports are or will be available over the Internet at the SEC's web site at http://www.sec.gov.

 

Contact: ECA Marcellus Trust I
  The Bank of New York Mellon Trust Company, N.A., as Trustee
  Sarah Newell
  1(512) 236-6555
  601 Travis Street, 16th Floor            Houston, TX 77002

 

 

 

Source: View Original Filing on SEC EDGAR

FAQ

What quarterly distribution did ECA Marcellus Trust I (ECTM) announce?

ECA Marcellus Trust I declared a quarterly cash distribution of $0.090 per unit for the quarter ended March 31, 2026. It is expected to be paid on or before June 2, 2026 to unitholders of record as of May 28, 2026.

When will ECA Marcellus Trust I’s May 2026 distribution be paid and who qualifies?

The distribution is expected on or before June 2, 2026 and goes to holders of record as of the close of business on May 28, 2026. Investors must own units by that record date to receive this quarterly payment.

How much is ECA Marcellus Trust I withholding for its cash reserve this quarter?

The Trustee elected to withhold approximately $90,000 from this quarter’s distributable cash. These funds contribute to a targeted cash reserve intended to cover future expenses or liabilities, with any excess eventually distributed back to unitholders with interest.

What is the total cash reserve target for ECA Marcellus Trust I?

The Trustee increased the targeted cash reserve from about $1.8 million to approximately $3.8 million. It has already achieved the initial $1.8 million level and plans to keep withholding $90,000 per quarter until the higher target is reached, subject to change.

What factors can affect future distributions from ECA Marcellus Trust I (ECTM)?

Future distributions depend on proceeds from Greylock’s natural gas production and prices, plus the Trust’s expenses and reserve funding. The Trust notes that low natural gas prices can significantly reduce available cash and may result in periods with no distributions to unitholders.

How are non-U.S. holders of ECA Marcellus Trust I units treated for U.S. tax withholding?

The notice explains that income effectively connected with a U.S. trade or business allocated to non-U.S. persons is generally subject to withholding at the highest marginal rate, and other U.S.-source income at 30% unless reduced by treaty, with additional 10% withholding rules on certain unit transfers.

Filing Exhibits & Attachments

1 document

Press Releases